BOARD PACKAGE. Meeting

Transcription

1 BOARD PACKAGE Meeting AUGUST 15, 2018

2 110 Northeast 3rd Street, Suite 300 Fort Lauderdale, Florida Tel: Fax: REGULAR MEETING A regular meeting of the Housing Finance Authority of Broward County (the HFA), Florida, will be held on Wednesday, August 15, 2018, at 6:00 p.m., in the 2 nd Floor Conference Room, located at 110 N.E. 3rd Street, Fort Lauderdale, Florida. CALLING OF THE ROLL CONSENT AGENDA ITEMS (1 through 5) 1. Approval of June 20, 2018, Regular Meeting Minutes 2. Executive Director s (July) Operational Report 3. Request for Letters of Interest (RLI) Audit Services for Single-Family and Multi- Family Mortgage Revenue Bonds. MOTION TO APPROVE Request for Letters of Interest (RLI) No AS3; Audit Services for the HFA Single Family and Multi-Family Mortgage Revenue Bonds 4. Florida Housing Finance Corporation 2018/2019 Tax Funding Cycles/Request for Applications MOTION TO APPROVE Resolution of the Housing Finance Authority of Broward County, Florida ("HFA"), approving and authorizing the use of up to $3,000,000 from HFA reserves to provide the Local Government Contribution requirement for the Florida Housing Finance Corporation s request for applications (as defined herein), subject to the conditions set forth herein; authorizing HFA staff to publish appropriate notices regarding the availability of such funding; and providing for severability, and an effective date. Chair: Colleen LaPlant Vice Chair: Milette Manos Secretary: Donna Jarrett-Mays Assistant Secretary: Daniel D. Reynolds Members: Ruth T. Cyrus Jose Pepe Lopez John G. Primeau

3 5. Florida Association of Local Housing Finance Authorities MOTION TO AUTHORIZE staff to pledge $5,000 to the Florida Housing Coalition/Sadowski Education Effort to provide financial support during the 2019 Legislative Session MOTION TO APPROVE the Consent Agenda Items 1 through 5. REGULAR AGENDA PRESENTATION 6. Financial Advisory Services Firms RLI # FAS2 Zomermaand Financial Advisory Services MOTION TO APPROVE final ranking of the qualified Financial Advisory Services firm for Request for Letters of Interest (RLI) No FAS2; HFA Financial Advisory Services; authorize staff and the Senior County Attorney to proceed with negotiations. 7. Fiscal Year 2019 Budget of the Housing Finance Authority MOTION TO APPROVE the Housing Finance Authority Budget for, Fiscal Year Financial Reports Monthly Overview Ms. Linda Dufresne UPDATE ITEM MOTION TO APPROVE the Housing Finance Authority monthly financial reports for the month of June 30 th and July 31, Emerald Palms Apartments - Credit Underwriting Report 10. MATTERS OF HFA MEMBERS 11. MATTERS FROM THE FLOOR 12. NEXT BOARD MEETING September 19, ADJOURNMENT 2

4 110 Northeast 3rd Street, Suite 300 Fort Lauderdale, FL Phone: Fax: MINUTES BOARD MEETING Wednesday, June 20, 2018 A regular Board Meeting of the Housing Finance Authority ( HFA ) of Broward County was held on Wednesday, June 20, 2018, at 5:30 p.m., in the 2 nd Floor Conference Room, located at 110 Northeast 3 rd Street, Fort Lauderdale, Florida. The Chair, Colleen LaPlant, called the meeting to order at 5:30 p.m. CALLING OF THE ROLL A Roll Call was taken by Sonia Isme. Board Members Present Colleen LaPlant, Chair Donna Jarrett-Mays, Secretary Daniel D. Reynolds, Asst. Secretary John G. Primeau, Member Jose Lopez, Member Ruth T. Cyrus, Member Board Members Absent Milette Manos, Vice Chair Staff Ralph Stone, Executive Director Norman Howard, Manager Sonia Isme, Secretary Annika Ashton, Sr. Asst. County Attorney Also Present Deborah Zomermaand, Financial Advisory Svcs Cathy Liddy, Dufresne CPA Services, P.A. Helen Feinberg, RBC Capital Markets Thomas Radicioni, Bank of NY Mellon Trust Co. Junious Brown, Nabors, Giblin & Nickerson Kevin E. Adderley, S. Davis & Associates, P.A. Tanya Davis, S. Davis & Associates, P.A. CONSENT AGENDA ITEMS 1 through 4 1. Approval of May 16, 2018, Regular Meeting Minutes 2. Executive Director s (May) Operational Report 3. Request for Letters of Interest (RLI) HFA Accounting Services for Single-Family and Multi-Family Mortgage Revenue Bonds Chair: Colleen LaPlant Vice Chair: Milette Manos Secretary: Donna Jarrett-Mays Assistant Secretary: Daniel D. Reynolds Members: Ruth T. Cyrus Jose Pepe Lopez John G. Primeau

5 MOTION TO APPROVE Request for Letters of Interest (RLI) No AS3 to provide accounting services for the HFA; monthly and annual financial statements for its Single Family and Multi-Family Mortgage Revenue Bonds and operations accounting. 4. Mortgage Credit Certificate Program MOTION TO APPROVE a Resolution of the Housing Finance Authority of Broward County, Florida ( Housing Finance Authority ) authorizing a Mortgage Credit Certificate Program ( MCC Program ); authorizing the exchange of single family private activity bond allocation in an amount not to exceed $140,000,000 for Mortgage Credit Certificate authority in an amount not to exceed $35,000,000; approving the form and authorizing the execution and delivery of (i) the Program Administration Guidelines, and (ii) Participation Agreements between the Housing Finance Authority and various lending institutions desiring to participate in the MCC Program; authorizing certain officials of the Housing Finance Authority to take all actions necessary in connection with the implementation of the MCC Program; providing certain other findings and details with respect thereto; and providing an effective date. MOTION TO APPROVE the Consent Agenda for June 20, MOTION was made by Daniel D. Reynolds, seconded by John G. Primeau, to approve Consent Agenda Items 1 through 4. The motion carried unanimously. Ms. LaPlant, the Chair, announced that item #7, will be moved next in line due to travel time constraints for the representatives in attendance. Mr. Stone explained that the representatives are regular members who interacts with the HFA on a day to day basis. He asked that they introduced themselves. The introduction was as followed: Mr. Thomas Radicioni, BNY Mellon (Trustee), Mr. Junious Brown, Nabors, Giblin & Nickerson, (Bond Counsel - Broward County/HFA), Ms. Helen Feinberg, RBC Capital Markets, (Bond Underwriter Investment Banker), and Ms. Cathy Liddy, Dufresne CPA Services. Due to the movement of Item #7, Emerald Palms during the meeting, staff has arranged the meeting minutes to be read in chronological order as deemed appropriate Single-family and Multifamily Housing Revenue Bonds Audited Financial Statements (Results Financial Overview) - Mr. Kevin E. Adderley, Senior Manager, S. Davis & Associates, P.A ( SDA ). Ms. Tanya Davis Engagement Partner, provided a brief introduction on the performance of the audit and deferred discussion to Mr. Kevin E. Adderley, Senior Manager. Mr. Adderley provided an overview of the bonds financial statement audit. HFA Board Meeting Minutes June 20, 2018 Page 2 of 5

6 Mr. Adderley stated that the financial statements were fairly presented in accordance with generally accepted accounting principles and that SDA s audit opinions on the bond financial statements were unmodified. There were no issues concerning the internal control process. On the Multi-family bond issue for Emerald Palms, Mr. Adderley stated the bonds were paid-off and cash balances were sufficient to pay the audit fee. Any remaining funds would be released to the developer. Mr. Reynolds inquired about the adjustment of the $46,599 in the financial statements. Mr. Adderley explained the adjustment was made to correct an inadvertent entry made for cash and deposit in escrow amounts. He continued covering other slide presentations, and noted recently retired bond issues which included Single-family Bond Series 2006 AB&C, Series 2007 ABC&D and 2007 E&F. There was a detailed discussion on the Fair Market Values and Changes in Net Position of the Single-family Bond Series 2006 AB&C, Series 2007 ABC&D and 2007 E&F between John G. Primeau, Deborah Zomermaand and Helen Feinberg. Mr. Adderley wrapped up the presentation identifying final exhibits and attachments in the conclusion of the audit. MOTION was made by John G. Primeau, seconded by Jose Lopez, to approve the 2017 Single-family and Multifamily Housing Revenue Bonds Audited Financial Statements (Results Financial Overview). The motion carried unanimously. 6. Financial Reports Monthly Overview Ms. Cathy Liddy, Dufresne CPA Services Ms. Cathy Liddy introduced herself on behalf of Ms. Linda Dufresne and provided a brief overview of the financial reports. She explained each balance sheet identifying significant line items and changes related primarily to individual cash and investment account activities, including residual funds released by BNY Mellon, funds released from the indemnification fund for return of good faith deposits in excess of related expenses and the transfer of investments from the US Bank Custody Account to the BNY Mellon Custody Account. Ms. Liddy continued to cover various areas of information in each attachment on profit and loss reporting of recent transactions, and the year to date differences for the reporting months of April and May. In addition, the BNY Mellon Custody Account Statements will now be included in the financial reports for future reporting. Mr. Primeau asked would the $122,860 Due to BOCC reoccur for the month of June based on the $245,720 difference. Mr. Howard explained the line item is a reimbursement to the BOCC, according to the budget approved by the HFA. The invoices are received quarterly and at times are delayed and is the reason for the difference. MOTION was made by Daniel D. Reynolds, seconded by Donna Jarrett-Mays, to approve the Housing Finance Authority monthly financial reports for May 31, The motion carried unanimously. HFA Board Meeting Minutes June 20, 2018 Page 3 of 5

7 7. Emerald Palms Apartments Ms. Deborah Zomermaand explained the item referenced a bond issue containing several documents for review and required Board approval of the draft form of the Credit Underwriting report. The credit underwriting report will be updated when the date of closing approaches with the updated report included as an information item within a future agenda. The resolution identifies the list of documents for consideration and approval. Due to the length of the written motion, Mr. Stone requested legal direction to allow approval of the motion in its written form versus a full reading of the motion. Ms. Ashton confirmed it to be acceptable to approve the motion as written. MOTION TO APPROVE Resolution of the Housing Finance Authority of Broward County, Florida (the Housing Finance Authority ) authorizing the issuance of its not to exceed $38,000,000 Multifamily Mortgage Revenue Note, 2018 Series a (Emerald Palms Apartments) (the Note ) for the purpose of financing the acquisition, rehabilitation and equipping of Emerald Palms Apartments located in Broward County, Florida (the Project ); establishing parameters for the award of the sale thereof and establishing criteria for determining the terms thereof, including interest rates, interest payment dates, maturity schedule and other terms of such note; approving the forms of and authorizing the execution and delivery of (i) a Funding Loan Agreement by and among the Housing Finance Authority, Jones Lang Lasalle Multifamily, LLC, as initial funding lender (the Funding Lender ), and the Bank of New York Mellon Trust Company, N.A., as Fiscal Agent (the Fiscal Agent ); (ii) a Project Loan Agreement by and among the Housing Finance Authority, the Fiscal Agent and Emerald Palms Venture LP (the Borrower ); (iii) a Land use Restriction Agreement by and among the Housing Finance Authority, the Fiscal Agent and the Borrower; (iv) an assignment of security instrument by the Housing Finance Authority to the Fiscal Agent; (v) an assignment of the Project Note by the Housing Finance Authority to the Fiscal Agent; (vi) a Placement Agent Agreement by and between the Housing Finance Authority and RBC Capital Markets, LLC and Raymond James & Associates, Inc., as Placement Agents; and (vii) a Fiscal Agent Fee Agreement by and between the Housing Finance Authority and the Fiscal Agent; approving and authorizing the execution and delivery of certain additional agreements necessary or desirable in connection with the issuance of the Note; waiving the fee for services related to the Housing Finance Authority s annual audit of the Project; authorizing the proper Officers of the Housing Finance Authority to do all things necessary or advisable in connection with the issuance of the note; and providing an effective date for this Resolution. MOTION was made by Daniel D. Reynolds, seconded by Ruth T. Cyrus, to approve Resolution The motion carried unanimously. HFA Board Meeting Minutes June 20, 2018 Page 4 of 5

8 8. Single-Family Bonds, Series 2007ABCD&EF & 2006ABC - Optional Redemptions Mr. Zomermaand stated the information was provided as an update on the recent redemption of the single-family bond transactions. She referred to several attachments identifying the outcome of single-family bonds based on various assumptions. She pointed out the estimates at face value including whole loans would bring a net gain for the HFA at $927K or without the whole loans the net gain will be at $476K. The estimate based on market value with whole loans reflects a net gain of approximately $1,272, Ms. Zomermaand stated the report was created to provide an overview of each transaction identifying potential gains for the HFA. The physical mortgage backed securities will be moved over to the HFA s custody account next month. Mr. Radicioni confirmed the securities would be transferred to the HFA custody account next week, and the trustee account still has the MBS s on record date to allow for proper reporting of the MBS s from a cost stand point before they are transferred to the custody account. Ms. Zomermaand continued to cover additional information on the individual statements for each of the bond series and stated the HFA will have an influx of investments into the custody account approximating $4.2 million, which will be reflected in the June statement. 9. MATTERS OF HFA MEMBERS Mr. Reynolds informed the board that he was recently reappointed. Ms. LaPlant, the Chair inquired about the board vacancies. Mr. Howard stated that he contacted the commissioners and was informed there were no candidates, and therefore will continue to search. 10. MATTERS FROM THE FLOOR None. 11. NEXT BOARD MEETING August 15, ADJOURNMENT The Chair, Colleen LaPlant hearing no further comments, questions or discussions adjourned the meeting at 5:58 p.m. HFA Board Meeting Minutes June 20, 2018 Page 5 of 5

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10 Bankruptcy June 2018 Loan Count Total 1 st Lien 2 nd Lien 1 st Mort./Total 2 nd Mort/Total 0 $0 0 0 $0 $0 Foreclosure (180+ days) June 2018 Loan Count Total 1 st Lien 2 nd Lien 1 st Mort./Total 2 nd Mort./Total 10 $1,280, $1,136,723 $143,687 Foreclosure (180+ days) comparison between June 2017 to June 2018 Comparison Year Foreclosures 1st Mortgage balance 2nd Mortgage balance Total June-17 June-18 7 $954,511 $36,504* 10 $1,136,723 $143,687** $991,015 $1,280,410 Difference(+/-) 3 $182,212 $107,183 $289,395 Note: * FY17 contain 7 foreclosures, 1 is a second mortgage. ** FY 18 contains 10 foreclosures, 4 are second mortgages Mortgage Credit Certificate Program (MCC) At this time, the HFA has seventeen (17) lenders participating in the January 2017 MCC Program. The program totals to date are as follows: MCC s by Lender Academy Mortgage Corporation America s Mortgage Professionals, LLC Bank of America, N.A. Banking Mortgage Services Corp Centennial Bank Christensen Financial, Inc CMG Financial, Inc. Cornerstone Home Lending Gold Star Mtg. Financial Group GSF Mortgage Corporation Gulf Atlantic Funding Group, Inc. Commitments Issued Cancelled/Expired HFA Executive Report (July 2018) Page 2 of 3

11 MCC s by Lender Commitments Issued Cancelled/Expired Home Mortgage Alliance Corp Hamilton Funding Group Paramount Residential Mortgage Group (PRMG) Plaza Home Mortgage, Inc United Shores/United Wholesale Mortgage The Mortgage Firm Totals Income to date (FY2018): $16,275 MULTIFAMILY HOUSING BOND TRANSACTIONS 2018 Multifamily housing transactions update for the month of August (Attachment 1). MULTI-FAMILY COMPLIANCE MONITORING Multifamily compliance monitoring; reporting period May 21, 2018, to June 20, Monthly Compliance Review of this month s bond report shows all properties are in compliance with their respective Land Use Restriction Agreements (LURA s). Occupancy Report The HFA Rental Occupancy Report for period May 21, 2018, to June 20, 2018, is included (Attachment 2). Annual Management Review and Inspections The following review and inspection was completed during the reporting period of May 21, 2018 to June 20, 2018 Golden Villas Apartments Meridian Apartments Pinnacle Apartments Woodsdale Apartments All the above listed properties were in compliance with their respective LURAs. HFA Executive Report (July 2018) Page 3 of 3

12 Housing Finance Authority of Broward County August 15, 2018 Board Meeting Request for Letters of Interest (RLI) for HFA Audit Services - Action Item Effective September 30, 2019, the agreement with S. Davis & Associates, P.A. terminates. Enclosed is a Request for Letters of Interest (RLI) No AS3 to provide audit services in relation to the Single Family and Multi-Family Mortgage Revenue Bonds. Staff is requesting the HFA approval of the RLI and the proposed timeline. 1. Approve the Request for Letters of Interest and the proposed timeline Wednesday, August 15, Advertisement Wednesday, September 19, In the Sun- Sentinel; Websites includes Broward County, Purchasing Division, and HFA; and staff maintain a list of firms in-house 3. Deadline for Receipt of Interest/Application Friday, October 26, Staff Opening Applications/ Prepares Evaluation Criteria (Matrix) Monday, October 29, Short List Qualified Firms (Sunshine Required) **** Wednesday, December 19, 2018 (Regular HFA Meeting) 6. Presentation (Respondents) **** Wednesday, February 20, 2019 (Regular HFA Board Meeting) 7. HFA Approval of Resolution and Agreement Wednesday, March 20, County Commissions approval of Agreement Tuesday, May 14 or 28, 2019

13 ****If there are five (5) or less proposals, the short list meeting and presentations meeting will be combined into one (1) meeting. Recommendation Approve the Request for Letters of Interest (RLI) No AS3 to provide audit services for the HFA Single Family and Multi-Family Mortgage Revenue Bonds; and the proposed timeline. Attachments 1. Request for Letter of Interest (RLI) 2. RLI - Public Notice

14 Housing Finance Authority of Broward County August 15, 2018 Board Meeting 2018/2019 Florida Housing Finance Corporation Request for Applications Staff is requesting HFA approval: (a) that up to $3,000,000 of HFA reserves may be made available as a shared source of funds to allow for a Local Government Contribution ( LGC ) with a value up to the FHFC Requirement per application for the 2018/2019 FHFC RFAs, subject to such commitments being replaced with Federal HOME Grant funds, other County housing resources, or bond allocation, and b) to publish funding availability notice. Background 1. The Florida Housing Finance Corporation ( FHFC ) has numerous competitive funding solicitations ( RFAs ) that require a LGC in order to receive maximum points. 2. Within the past several years, Broward County and/or the HFA have provided LGC commitments for all applicants responding to the 9% tax credit and SAIL applications. 3. Historically, Broward County has authorized the replacement of the LGC provided by the HFA with funding from Broward County s allocation of housing resources including federal HOME Grant funds, SHIP, CDBG or other available housing funds. 4. At its August 2017, meeting the HFA Board authorized LGC funding for FHFC programs including 9% tax credit financing and State Apartment Investment Loan ("SAIL") funding ( FHFC 2017/2018 Programs ). Present Situation 1. On June 12, 2018, FHFC posted within its website the Florida Housing Finance Corporation Tentative 2018/2019 Funding Amounts/Time Lines (All Information Subject to Change), which provides estimated funding amounts and deadlines for FHFC programs including 9% tax credit ( HC ) financing, Workforce Housing and State Apartment Investment Loan ("SAIL") funding ( FHFC 2018/2019 Programs ). (Attachment I). 2. To achieve maximum points, each application is anticipated to require an LGC (the FHFC Requirement ). The current Broward County LGC FHFC Requirement is a value of at least $100, The FHFC 2018/2019 Programs listing reflects: a) 9% HC RFA due date as October 30, 2018, b) Workforce Housing SAIL RFA due date as TBD, and c) SAIL with Tax- Exempt Bonds and 4% HC RFA due date as late November To assure that sufficient funding is available to provide LGC to all applications, staff requests authorization to utilize up to $1,000,000 of HFA resources per RFA to provide LGC. The result is that the HFA may have up to $3,000,000 in LGC funding commitments

15 although only a maximum of three or four applications are anticipated to be ranked for funding. 4. During the FHFC 2017/2018 Programs cycle five (5) Broward County applications were submitted which required LGCs. Out of those applications two (2) applications were award funding of which only one (1) required a LGC from HFA funds. Therefore, LGCs commitments for 2017/2018 total $124,000. The HFA s original funding commitment will be replaced with non-hfa Broward County housing resources. (Attachment II) 5. Staff requests authorization to expand the use of the $3,000,000 previously authorized to provide an LGC for FHFC 2017/2018 Programs to also allow for an LGC for the FHFC 2018/2019 Programs (including any additional 2018/2019 RFAs added by FHFC). To the extent that an RFA allows 4% HC with local bonds, unless waived by the Executive Director, the LGC will be restricted to transactions utilizing HFA bonds. 6. Staff requests authorization to publish one or more public notices regarding the HFA s solicitation of applications for developments requiring LGC for FHFC 2018/2019 Programs in a form similar to what is included as Attachment III. 7. Should any Broward County project be selected by the FHFC for funding, the LGC provided by the HFA will be replaced with funding from: a) Broward County s allocation of federal HOME grant funds, b) other County housing resources, or c) HFA Private Activity Bond Allocation sufficient to meet the requirements of FHFC. Recommendation Approve Resolution , titled: A RESOLUTION OF THE HOUSING FINANCE AUTHORITY OF BROWARD COUNTY, FLORIDA ("HFA"), APPROVING AND AUTHORIZING THE USE OF UP TO $3,000,000 FROM HFA RESERVES TO PROVIDE THE LOCAL GOVERNMENT CONTRIBUTION REQUIREMENT FOR THE FLORIDA HOUSING FINANCE CORPORATION S 2018/2019 REQUEST FOR APPLICATIONS (AS DEFINED HEREIN), SUBJECT TO THE CONDITIONS SET FORTH HEREIN; AUTHORIZING HFA STAFF TO PUBLISH APPROPRIATE NOTICES REGARDING THE AVAILABILITY OF SUCH FUNDING; AND PROVIDING FOR SEVERABILITY, AND AN EFFECTIVE DATE. Attachments I. Florida Housing Finance Corporation Tentative 2018/2019 Funding Amounts/Time Lines (All Information Subject to Change); Dated June 12, 2018 II. FHFC 2017/2018 Broward Application Summary III. Form of Public Notice IV. HFA Resolution

16 Housing Finance Authority of Broward County August 15, 2018 Board Meeting Florida Association of Local Housing Finance Authorities (Florida ALHFA) Authorize staff to pledge $5,000 to the Florida Housing Coalition/Sadowski Education Effort to provide financial support during the 2019 Legislative Session. Present Situation Staff received a letter from the Florida ALHFA dated July 27, 2018 (Attachment 1), requesting its members to continue supporting the Florida Housing Coalition/Sadowski Education Effort ( SEE ) in the 2019 Legislative Session by providing financial support in this educational effort. With term limits, there is continual turnover in the Legislature; new Legislators must be educated on the value of Housing Finance Authorities and State housing programs. Background In 1992 the Sadowski Coalition was formed to ensure the State of Florida Legislature approved funds annually to be set aside for affordable housing throughout the State of Florida, for example, State Housing Initiatives Partnership (SHIP) and State Apartment Initiatives Loan (SAIL). SHIP and SAIL are very important for bond transactions to assist in gap financing on affordable rental developments. Since August, 2009, the Broward HFA has contributed $41,000 (2010, $5,000; 2011, $1,000; 2012, $5,000; 2013, $5,000, 2014, $5,000, 2015, $5,000, 2016, $5,000, 2017, $5,000 and 2018, $5,000) for the Florida Housing Coalition/Sadowski Education Effort of Florida. Recommendation Authorize staff to pledge $5,000 to the Florida Housing Coalition/Sadowski Education Effort to provide financial support during the 2019 Legislative Session. Attachment 1. Florida ALHFA letter dated July 27, 2018

17 Housing Finance Authority of Broward County August 15, 2018 Board Meeting On February 21, 2018, the board approved the Request for Letters Interest (RLI) No FAS2 to provide the HFA with Financial Advisory Services in the area of housing tax exempt and/or taxable private activity bonds. In addition, the Financial Advisor will assist HFA and staff with capital and strategic planning. One firm submitted a proposal in response to the RLI deadline dated June 15, I. Presentations HFA Financial Advisory Services (RLI # FAS2) Zomermaand Financial Advisory Services, LLC II. Presentations Ranking Methodology Staff recommends the following: Ranking the firm from a scale of 1-3, with 1 being the highest. Based on the above ranking methodology, HFA Members will rate the abovementioned firm using a ballot sheet. Staff will tally each ballot sheet and provide a total count to the HFA Chair. Attachments 1. Ranking Ballot Sheet 2. RLI # FAS2 3. RLI Timelines (Completion Dates)

18 Housing Finance Authority of Broward County February 21, 2018 Board Meeting Request for Letters of Interest (RLI) for HFA Financial Advisory Services - Action Item Effective April 13, 2019, the agreement with Zomermaand Financial Advisory Services, LLC terminates. Enclosed is a Request for Letters of Interest (RLI) No FAS2 to provide the HFA with financial advisory services in the area of housing tax exempt and or taxable private activity bonds, assist with capital, investments, and strategic planning, preparing special reports and analyses as requested by the HFA. 1. Approve the Request for Letters of Interest and the proposed timeline Wednesday, February 21, Advertisement Wednesday, April 25, 2018 (Sun- Sentinel; Websites includes Broward County, Purchasing Division, HFA, and Housing Council; and staff maintain a list of firms in-house 3. Deadline for Receipt of Interest/Application Friday, June 15, Staff Opening Applications/ Prepares Evaluation Criteria (Matrix) Monday, June 18, Short List Qualified Firms (Sunshine Required) **** Wednesday, August 15, 2018 (Regular HFA Meeting) 6. Presentation (Respondents) **** Wednesday, September 19, 2018 (Regular HFA Board Meeting) 7. HFA Approval of Resolution and Agreement Wednesday, October 17, County Commissions approval of Agreement Tuesday, December 4, 2018

19 ****If there are five (5) or less proposals, the short list meeting and presentations meeting will be combined into one (1) meeting. Recommendation Approve the Request for Letters of Interest (RLI) No FAS2 to provide the HFA with financial advisory services in the area of housing tax exempt and or taxable private activity bonds, assist with capital, investments, and strategic planning, preparing special reports and analyses as requested by the HFA; and the proposed timeline. Attachment 1. Request for Letter of Interest (RLI)

20 Proposed Budget for FY2019 Housing Finance Authority of Broward County August 15, Board Meeting Staff is requesting approval of the HFA proposed Budget for FY2019. Background HFA Board approval is required by the Administrative Code for the HFA of Broward County Budget covering the period of October 1, 2018, to September 30, Explanations are provided for line items for which the budget fluctuation exceeds both $10,000 and 10%. Original Budget FY 2018 Proposed Budget FY 2019 $Budget Difference Increase (Decrease) FY 2018/ FY 2019 %Budget Difference Increase (Decrease) FY 2018/ FY 2019 Revenue: 1 MCC Programs Income $35,000 $20,000 $(15,000) -43% 2 Interest Income $190,000 $300,000 $110,000 58% 3 Liquidation of Investments $100,000 $50,000 $(50,000) -50% Expenses: 4 Zomermaand Financial Advisory $75,000 $86,000 $11,000 5% 5 Bond Counsel $3,000 $28,000 $25, % 6 Advertising/Marketing/Notices $4,000 $5,000 $1,000 25% 7 Liability Insurance/HFA Board $ 9,000 $0 $(9,000) -100% Broward County Operating Expense: 8 Motor Pool $3,360 $860 $(2,500) -74% Explanation of Budgetary Variances Revenue: 1 MCC Program Income: MCC program applications have declined by approximately 40% compared to prior year, due an increase in housing cost. 2 Interest Income: In fiscal 2018, the HFA received residual funds from Bank NY Mellon as a result of bond retirements.

21 3 Liquidation of Investments: As needed, the HFA sells investments to meet cash flow requirements. Expenses: 4 Zomermaand Financial Advisory: This increase in expense represents expenditures for the 2018/2019 MCC Program. 5 Bond Counsel: This increase in expense represents expenditures for the 2018/2019 MCC Program 6 Advertising/Marketing/Notices: Increase in public notices for HFA programs. 7 Liability Insurance/HFA Board: The HFA Board/Officials liability insurance is not required based on Broward County Administrative Code. Broward County Operating Expense: 8 Motor Pool: Decrease in prior years expenses. Recommendation Staff recommends approval of the 2019 HFA Budget. Attachment HFA Proposed Budget

22 Housing Finance Authority of Broward County Dufresne CPA Services, PA Overview of the July 2018 Financial Reports The following are items considered to be of note regarding the financial reports for the month of July 2018: 1. Balance sheets (Attachments 1 and 2) changes relate primarily to individual cash and investment account activity, including funds released from the indemnification fund for return of good faith deposits in excess of related expenses and the transfer of investments from the US Bank Custody Account to the BNY Mellon Custody Account. a. During fiscal 2017, the Authority s lot valued at $31,400 entitled HFA Land Inventory For Homes was granted to the homeowner who purchased the Franklin Park home which was built on the lot. The closing documents assigned no value to the lot and no payment for the lot was received by the Authority when the transaction was closed during fiscal After discussion with the auditors, the transaction was reported on the audited financial statements for fiscal 2017 as a Land Grant on the Statement of Activities and was removed from the Statement of Net Position. The result of recording the transaction to reflect removal of the lot from the Authority s internal records appears as a difference in Attachment 2 on page 3. b. Emerald Palms good faith deposit of $75,000 was received in April, 2018 and appears as a difference in the Indemnification Fund BNY and Good Faith Deposits in Attachments 1 and 2, pages 2 and Profit and loss report indicates the changes that relate primarily to timing of new bond issuances, redemptions and related fees and residuals, fair market value adjustments, rent income and timing of invoices paid and payments received. Significant application, TEFRA and closing fees relate to Landings at Coconut Creek closing and NW Gardens conversion (Attachments 3 and 4, pages 4 and 5); bond residual income relate to Single family 06AB, 07ABC and 07E Cash vs Accrual Basis for P&L Budget to Actual comparison (Attachment 4) On a monthly basis the process to prepare the financial statements includes: a. Budgetary column Cumulative 1/12 of the budgeted revenues and expenses are reported b. Actual column Significant known revenue and expense items are accrued a. Authority fees receivable are adjusted to correct accrual basis balance b. Cumulative 1/12 of budgeted Personnel and Other Expenses due to BOCC are adjusted to correct accrual basis balance c. Expenses for all invoices submitted to the HFA prior to month end are paid and recorded in the financial statements. d. Bank and account management fees that are reported on the monthly bank statements are recorded as expense in the applicable month. Index to Attachments Attachment 1, Page 2: Balance Sheet (Flux Report July 2018 comparison to June 2018) Attachment 2, Page 3: Balance Sheet (Flux Report July 2018 comparison to July 2017) Attachment 3, Page 4: P&L (Flux Report Current Year-to-Date to Prior Year-to-Date) Attachment 4, Page 5: P&L (Flux Report Budget to Actual) Attachment 5, Page 6: Aged Receivables Report Attachment 6, Page 7: Wells Fargo Bank Reconciliation Report Operating Attachment 7, Page 8: Professional Fees Detail Attachment 8, Page 9: Cumulative Net Change in Investment Value Attachment 9, Pages 10-16: BNY Mellon Custody Account Statement of Assets Held at 7/31/2018 1

23 Housing Finance Authority of Broward County Dufresne CPA Services, PA Overview of the June 2018 Financial Reports The following are items considered to be of note regarding the financial reports for the month of June 2018: 1. Balance sheets (Attachments 1 and 2) changes relate primarily to individual cash and investment account activity, including funds released from the indemnification fund for return of good faith deposits in excess of related expenses and the transfer of investments from the US Bank Custody Account to the BNY Mellon Custody Account. a. During fiscal 2017, the Authority s lot valued at $31,400 entitled HFA Land Inventory For Homes was granted to the homeowner who purchased the Franklin Park home which was built on the lot. The closing documents assigned no value to the lot and no payment for the lot was received by the Authority when the transaction was closed during fiscal After discussion with the auditors, the transaction was reported on the audited financial statements for fiscal 2017 as a Land Grant on the Statement of Activities and was removed from the Statement of Net Position. The result of recording the transaction to reflect removal of the lot from the Authority s internal records appears as a difference in Attachment 2 on page 3. b. Emerald Palms good faith deposit of $75,000 was received in April, 2018 and appears as a difference in the Indemnification Fund BNY and Good Faith Deposits in Attachments 1 and 2, pages 2 and Profit and loss report indicates the changes that relate primarily to timing of new bond issuances, redemptions and related fees and residuals, fair market value adjustments, rent income and timing of invoices paid and payments received. Significant application, TEFRA and closing fees relate to Landings at Coconut Creek closing and NW Gardens conversion (Attachments 3 and 4, pages 4 and 5); bond residual income relate to Single family 06AB, 07ABC and 07E Cash vs Accrual Basis for P&L Budget to Actual comparison (Attachment 4) On a monthly basis the process to prepare the financial statements includes: a. Budgetary column Cumulative 1/12 of the budgeted revenues and expenses are reported b. Actual column Significant known revenue and expense items are accrued a. Authority fees receivable are adjusted to correct accrual basis balance b. Cumulative 1/12 of budgeted Personnel and Other Expenses due to BOCC are adjusted to correct accrual basis balance c. Expenses for all invoices submitted to the HFA prior to month end are paid and recorded in the financial statements. d. Bank and account management fees that are reported on the monthly bank statements are recorded as expense in the applicable month. Index to Attachments Attachment 1, Page 2: Balance Sheet (Flux Report June 2018 comparison to May 2018) Attachment 2, Page 3: Balance Sheet (Flux Report June 2018 comparison to June 2017) Attachment 3, Page 4: P&L (Flux Report Current Year-to-Date to Prior Year-to-Date) Attachment 4, Page 5: P&L (Flux Report Budget to Actual) Attachment 5, Page 6: Aged Receivables Report Attachment 6, Page 7: Wells Fargo Bank Reconciliation Report Operating Attachment 7, Page 8: Professional Fees Detail Attachment 8, Page 9: Cumulative Net Change in Investment Value Attachment 9, Pages 10-14: BNY Mellon Custody Account Statement of Assets Held at 6/30/2018 1

24 Housing Finance Authority of Broward County August 15, 2018 Board Meeting Multifamily Family (Emerald Palms Apartments) Informational Item Credit Underwriting Report for Emerald Palms Apartments (the Development ); in substantially final form. Background 1. A draft Credit Underwriting Report was presented to the HFA Board at its June 20, 2018 meeting. 2. The Board was apprised that an updated report would be presented as an Informational Item prior to closing. Present Situation 1. The updated Credit Underwriting Report, in substantially final form is attached. 2. The closing for the financing of this Development is presently scheduled for late August Exhibit 1. Credit Underwriting Report**